Massachusetts from Paramount Hotel Group for $15.2 million,
or $74,000 per Room
|GERMANTOWN, Tenn. - Aug. 17, 2005 -- Equity Inns, Inc. (NYSE: ENN),
a hotel real estate investment trust (REIT), today announced that it has
entered into an agreement to purchase two Hilton branded hotels for $15.2
million, or $74,000 per room. This purchase price includes an additional
investment of $1.1 million for the refurbishment of the hotels. Acquisition
of the hotels will follow the satisfactory completion of due diligence,
and the transaction is expected to close during the third quarter 2005.
The Company expects that the acquisition of these hotels will be slightly
accretive to its 2005 funds from operations (FFO).
Equity Inns will acquire a Homewood Suites and a Hampton Inn in Peabody, Massachusetts, a suburb 12 miles north of downtown Boston.
Collectively, the two hotels have an average age of six years and will add 206 rooms to the Company's hotel portfolio. Paramount Hotel Group, who sourced the acquisitions to the Company, will continue to manage the properties under a three year agreement which will include property specific performance thresholds. In addition to the Peabody properties, Paramount Hotel Group manages 29 hotels primarily in New England and the Mid-Atlantic.
Howard Silver, President and Chief Executive Officer commented, "With the acquisition of these two Hilton properties, we are entering the Boston area for the first time and, we believe, at a good time. This market is starting to experience a healthy rebound from the latest industry downturn. We are acquiring well-located properties at a significant discount to their replacement value. Furthermore these properties will undergo a total refurbishment, which, together with the improving market, bodes well for attractive returns over the long term to the Company and our shareholders."
When this transaction is finalized, the Company will own 118 hotels with 14,267 rooms in 35 states.
About Equity Inns
Equity Inns, Inc.
|Also See:||The Landis Group Opens the Residence Inn Princeton, New Jersey; Paramount Hotel Group Operates the Property / May 2005|
|Paramount Hotel Group Now Has Management or Ownership Interests in 26 Hotels; Company Started by David A Simon, Former Chairman and CEO of Prime Hospitality Corp / Oct 2002|